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TechCrunch on the shutdown: https://techcrunch.com/2019/01/21/munchery-shuts-down/ https://techcrunch.com/2019/01/21/munchery-shuts-down/ The meal delivery com
by pbreit 8y ago
TechCrunch on the shutdown:
https://techcrunch.com/2019/01/21/munchery-shuts-down/ https://techcrunch.com/2019/01/21/munchery-shuts-down/
The meal delivery companies all seemed to expand too fast. There were no economies of scale to be had by geographical expansion. These companies needed to absolutely nail one or two big metros before even thinking about expansion.
- dang 8y agoOk, we've added that URL. Thanks!
- pfranz 8y agoI didn't realize that the name recognition was so regional in this space. I remember traveling internationally years ago and looking at Yelp for recommendations. After reading a few reviews and seeing what restaurants had the highest ratings I could tell that it was mostly used by tourists, not by locals. I know for restaurants the real money is made by expanding and sharing the suppliers, management, advertising, but for something like a delivery app I'm not sure what the benefit of growing quickly is if you have competition outside of being first to (that local) market.
- LoSboccacc 8y ago> nail one or two big metros is there any that tried instead to partner with some existing catering company to leverage their off time instead of building everything from scratch? seems to me building your whole cooking chain is quite inefficient
- beaconstudios 8y agoLeanLunch are doing this well in Leeds, UK. But I don't think they're backed by absurd amounts of VC cash (and pressure) either.